In a significant development, the Directorate General of Goods and Service Tax Intelligence (DGGI) has uncovered substantial GST evasion by a company located in Anantnag district of the Kashmir valley. This discovery is part of a larger effort by the DGGI to combat fraudulent input tax credit and fake GSTINs. The company, involved in road construction across various districts of Jammu and Kashmir, has been found guilty of availing fake ITC based on fictitious invoices from non-existent suppliers.
During the search operation, the company’s management confessed to their involvement in this fraudulent activity after being presented with undeniable evidence of tax evasion. They had been fraudulently claiming input tax credit for goods that were never received, as these transactions were merely on paper.
The investigation is ongoing, with additional searches being conducted throughout the Kashmir valley. It is expected that further instances of GST evasion will be uncovered as a result. The DGGI, operating under the Central Board of Indirect Taxes & Customs and the Ministry of Finance, is the apex intelligence organization responsible for collecting, collating, and disseminating information related to GST evasion nationwide.
It is worth noting that the Central Board of Indirect Taxes has established a rewarding policy for informers who provide specific information pertaining to GST evasion. This serves as an incentive for individuals to come forward and contribute to the fight against tax fraud.